Internal Rate of Return Analysis Refer to data in E12-6A. What is the internal rate of return for Proposal X? For Proposal Y?

Cooper Corporation must evaluate two capital expenditure proposals. Coopers hurdle rate is 10%.

Data for the two proposals follow. Proposal X Proposal Y

Required investment............................................ $120,000 $120,000

Annual after-tax cash inflows ..................................... 24,000

After-tax cash inflows at the end of years 3, 6, 9, and 12................ 72,000

Life of project ................................................. 12 years 12 years